Cyber Insurance is one of the most important tools and a type of insurance that a lot of companies and businesses these days are using as it gives a cover against the inevitable cyber-attacks, Data breaches, and Identity theft. According to a report, Cyber attacks are projected to hit $6 trillion in annual loss in 2021 which has doubled since 2015. (Cybersecurity Ventures) This data gives a huge estimate that companies will now make sure they have Cyber Insurance plans. As employees are still working from home or remotely, there is a requirement for sharing important and sensitive data or accessing the same. This can cause some loopholes in the system which becomes a field of play for the cyber attackers.
Cyber insurance is a type of insurance coverage that protects organizations and individuals against financial losses and legal liabilities arising from cyber attacks, data breaches, and other cybersecurity incidents. The policy typically covers expenses related to responding to a cyber attack, such as crisis management, data recovery, and legal fees, as well as compensation for any financial losses resulting from the incident. Cyber insurance can help organizations manage the financial and reputational risks associated with cyber threats and can provide peace of mind in the event of a breach.
Cyber insurance is essential because when a firm is hit by a cyberattack, it suffers a significant financial loss. In 2021, one of the largest insurance companies had to pay $40 million as a settlement for a ransomware attack. In some cases, a company’s valuation can drop by 50%. Yahoo was hit by one of the largest cyberattacks in history, resulting in the theft of information from over 3 billion users and enormous financial losses. A cyber security attack is possible for roughly 60% of enterprises worldwide. This shows how important it is for any organization to have access management systems in place to secure or protect their data. One can only be eligible for having cyber Insurance if they have the standard security systems in place MFA is one of the most crucial ones. As a result, MFA, along with cyber insurance, has become critical for businesses.
Cyber Insurance also comes with a lot of compliances, one such new compliance is Multi-Factor Authentication.
What is Multi-Factor Authentication (MFA) and Why is it required for Cyber Insurance?
Multi-Factor Authentication (MFA) is a security process that requires multiple forms of identity verification to access a protected system or resource. In the context of cyber insurance, MFA can help reduce the risk of unauthorized access to sensitive information, such as financial data, and improve the security of a company’s systems and networks. By requiring multiple forms of authentication, such as a password and a security token, MFA provides an extra layer of protection beyond just a username and password.
Recent rules and compliances by Cyber Insurance companies state that Multi-factor Authentication is a must for any organization to even apply for cyber insurance. This is backed by the fact that Multi-factor authentication is arguably the most important step that companies can take to secure/protect the data and defend against online attacks. Using a second factor can block 99.9% of all attacks, Microsoft said in an analysis of attacker tactics.
Multi-factor authentication (MFA) and Access management also come in handy in case of Identity/data theft, Every 5th individual in the world is involved in Identity theft. MFA and access management along with complying have a huge benefit for the companies. Securing Identity and data is a big task as a Cyber attack happens every 39 seconds according to a report from the University of Maryland.
MFA or Multiple Factor Authentication is a method of performing a safe and secure authentication process. In this technique, the user is asked to authenticate his/her identity multiple times. The most common example would be logging into a website/network using your username and then being prompted to enter an OTP. This OTP is sent to another device owned by the user.
Companies can face various types of losses due to cyber attacks, including:
- Financial Losses: Theft or unauthorized transfer of funds, payment fraud, and loss of revenue due to business interruption.
- Data Loss: Loss or theft of sensitive data, including personal information, financial information, and confidential business information.
- Reputational Damage: Loss of customers’ trust and confidence in a company’s ability to protect their information.
- Legal Liabilities: Legal fees and settlements resulting from lawsuits, regulatory fines, and other legal actions.
- Business Interruption: Loss of productivity and revenue due to downtime and disruption caused by a cyber attack.
- IT and Investigation Costs: Cost of IT services to recover from the attack, as well as costs of investigations to determine the cause and extent of the breach.
- Cyber insurance can help companies mitigate these losses by providing financial protection and support for responding to and recovering from a cyber attack.
miniOrange MFA detailed
miniOrange provides a ready-to-use solution for Multi-factor Authentication with 5000+ Pre Integrated apps, We support all network authentication like SAML, OAuth, OIDC, JWT, and Radius.
There are several types of MFA that can be used, including:
- Something the user knows: This can include a password or PIN.
- Something the user has: This can include a security token or a smartphone with a specific app installed.
- Something the user is: This can include biometric data such as a fingerprint or facial recognition.
miniOrange provides 15+ Second Factor authentication methods that include OTP over SMS, OTP over Email, Out of band SMS, Google Authenticator, Microsoft Authenticator, etc.
During this Pandemic era, many Organizations have asked their employees to work from home which requires the use of VPN services. Attackers are targeting Enterprise VPN providers and hence pose a lot of security threats to the Organization.
BENEFITS OF MFA
- Protects user data from Identity theft: MFA by adding an extra layer of authentication, secures the data 99% times from identity theft
- Works in sync with SSO solutions: miniOrange MFA solutions apart from providing a second layer of security also help you sign in to multiple applications with single credentials
- Must for complying with Cyber Laws: As the above blog gives a brief description of how MFA is a must for complying with Cyber Laws
- Easy to implement: miniOrange’s MFA solution is easy to set up with more than 5000+ pre-integrated applications.
On average, the cost of a cyber attack can range from tens of thousands of dollars for small and medium-sized businesses to millions of dollars for large enterprises. Some estimates put the average cost of a data breach for a company at around $3.86 million globally. However, the actual cost of a cyber attack can be much higher depending on the specific circumstances of each case.
This article explains why Multi-Factor Authentication is necessary to protect our users’ identities and data from phishing, malware, and DDOS attacks. It no longer just safeguards our data; it is now also a must for the future of your company in the event of a cyber attack. It signifies that MFA is required in order to apply for Cyber Insurance as MFA is a vital layer for protection.
You can create your FREE account with us HERE and enable MFA within minutes to get compliant with cyber insurance and protect your organization!